HRA AND HRIS

1. BBM(2014-2017)
Sec “A”
Group 11

2. Most precious
asset of an
Organization
is its employees.

3. • HRA is accounting for people as an organizational resource. It involves
measuring the costs incurred by organizations to recruit, select, hire, train,
and develop human assets. It also involves measuring the economic value of
people to the organization.
• Art of valuing, recording and presenting systematically the worth of
human resources in the books of account of an organization.

4. • The need for human asset valuation arose as a result of growing concern for human
relations management in the industry.
• Consider people as its asset.
• Attract and retain qualified people.
• Profile the organization in financial terms.
• To have an analysis of the human asset.
• To aid in the development of management principles, and proper decision making for
the future.

5. • Furnishes cost/value information for making management decisions about acquiring,
allocating, developing, and maintaining human resources in order to attain cost
effectiveness.
• Helps the management in the employment, locating and utilization of human resources.
• Helps in deciding the transfers, promotion, training and retrenchment of human
resources.
• Assists in evaluating the expenditure incurred for imparting further education and training
in employees in terms of the benefits derived by the firm

6. • Management tool designed to assist senior management in understanding the long
term cost and benefit implications of their HR decisions.
• Helps in identifying the causes of high labor turnover at various levels and taking
preventive measures to contain it.
• Helps in identifying improper or under-utilization of physical assets or human resource
or both.
• Provides valuable information for persons interested in making long term investment in
the firm.

7. • No specific procedure for finding cost and value of human resources of an organization
• Form and manner of including HRA value in the financial statement is not clear
• Employee with a comparatively low value may feel discouraged
• Tax laws do not recognize human beings as assets

9.  Historical Cost
 Replacement Cost
 Opportunity Cost
 Standard Cost
 The Lev and Schwartz Model (Present value of future earnings method)
 The Eric Flamholtz Model (Reward Valuation method)
 Morse Model (Net Benefit Model)

10.  Likert Model
 The Flamholtz Model
 Ogan Model (Certainty Equivalent Net Benefit Model)

12. HRIS – Human Resource Information System
Why it is needed?
Application And Its Utilities
HRIS – Development
Skills for Practitioners
Implementation
Advantages and Disadvantages

13. The Human Resource Information System (HRIS) is a software or online
solution for the data entry, data tracking, and data information needs of
the Human Resources, payroll, management, and accounting functions
within a business.
It merges HRM as a discipline and in particular its basic HR activities and
processes with the information technology.

14. Storing information and data of each and every individual employee.
Supplying data and submitting returns to government and statutory
organizations.
Provides a basis for planning , decision making , controlling and other
human resource functions.
Meeting daily transactional requirements such as recording employee
presence , grant leaves.

16. Complete Business Solution
Build you own Integrated System
Multiple System and Data Hub Approach (MS & DH)

17. Consulting Skills
Facilitation Skills
Self management
Communication Skills
Computer Skills

18. Personal administration - It will encompass information about each
employee , such as name , address , personal details etc.
Salary administration - Salary review procedure is an important function
of HRM , a good HRIS will actually provide all the important data related
to salary payments.
Skill inventory - It is also used to store record of acquired skills and
monitor the skill database both employee and organization level.
Career planning - System provides succession plans to identify which
employee have been en-marked for which position.

19. Conceive
and Plan
Analyse Design
Test Implement - Maintain

20. Advantages
Higher retrieval of data and
processing of data.
Reduction in duplication of efforts
leading to reduced cost.
Better work culture.
Improved quality of reports.
Disadvantages
It can be expensive in terms of
finance and manpower.
Thorough understanding of what
constitutes quality information for
the user.

21. HRIS in use :
Apple Computer System allows employees to enroll in benefits programs
directly from their personal computers. Line managers can process
traditional employee transactions such as pay increases, and they can use
learning modules that instruct them in skill improvement programs such
as conducting legal performance analysis.